7:18 X Scan_2022-03-30-103747481 PDF - 1.2 MB 6. The Ultramares doctrine requires what before accountants will be liable to third parties? a. A declaration of intent. b. Scienter. c. Privity or near privity of contract. d. Foreseeability of the harm. 7. The Restatement (Second) of Torts states that accountants will be liable to third parties for their negligent acts: a. when the persons who are harmed were foreseeable users. b. never. c. any time any user relies on the accountant's statements or reports. d. only when the users were clients. Liability of Accountants - Quiz (continued) 8. If an accountant files misstatements or omits material facts from a registration statement for a security, the accountant will be liable: a. for a common law tort. b. under Section 11 of the 1933 Securities Act. c. under Section 10(b) of the 1934 Securities Exchange Act. d. under the Sherman Act. 9. Section 11 of the 1933 Securities Act imposes what duty on accountants? a. The duty of care. b. The duty of due diligence. c. The duty of the Samaritan. d. The duty of proximate cause. 10. Which of the following IS NOT a legitimate defense to a Section 11 violation? a. A plaintiff invested in securities knowing that there were misstatements or omissions in the registration materials. b. The misstatements or omission caused the plaintiff's loss. c. The misstatements or omissions were of material facts. d. There were no misstatements or omissions. 1 1. Accountants may be liable for violations of the securities laws under Section 10(b) of the 1934 Securities Exchange Act. The provisions of this Act which apply to accountants are: a. the defamation provisions. b. the libel provisions c. the environmental provisions. d. the antifraud provisions. 12. In order for a plaintiff to recover from an accountant under Section 10(b), what must be prove? a. The accountant was an aider. b. The accountant was an abettor. c. Scienter. d. The accountant was also an auditor. 13. If an accountant aids or assists in the preparation of a false tax return, the accountant may face: a. life imprisonment. b. fines of up to $100,000 plus 3 years in jail. c. fines of up to $10,000 and 1 year in jail. d. fines only - but up to $500,000. 14. The working papers of an accountant may best be defined as: a. the materials the accountant uses during the course of a typical business day. b. the privileged communications between an accountant and his attorney. c. depositions conducted by the accountant's attorney. d. the various documents used and developed by an accountant during an audit.7:13 X Scan_2022-03-30-103747481 PDF - 1.2 MB Liability of Accountants - Quiz 1. Accountants may be liable, under the common law, for breaches of contract. A breach of contract might occur if: a. an accountant wrongfully interferes with the right to use and enjoy property. b. an accountant fails to perform as agreed in a contract. c. the accountant breaches a duty of care. d, the accountant fails to register a security. 2. Which of the following IS NOT one of the necessary elements in a lawsuit for negligence against a professional? a. The plaintiff's injury must be proximately caused by the defendant's breach of his duty of care. b. The defendant must be a member in good standing of a professional organization. c. A duty of care must exist. d. The plaintiff must suffer an injury. 3. In the performance of their services, accountants must comply with which of the following? a. Generally Accepted Accounting Principles. b. The attorney code of ethical conduct. c. The Ultramares rule d. The Restatement (second) of Accounting. 4. Another term for defalcation is: a. fraud b. embezzlement. c. trespass. d. nuisance 5. The traditional rule concerning an accountant's liability to third parties was issued in which case? a. In the Adarand case b. In In Ultramares Corp. v. Touche. c. In Credit Alliance Corp. v. Arthur Andersen & Co. d. In Raritan River Steel Co. v. Cherry, Bekaert & Holland. 6. The Ultramares doctrine requires what before accountants will be liable to third parties? a. A declaration of intent. b. Scienter. c. Privity or near privity of contract. d. Foreseeability of the harm. 7. The Restatement (Second) of Torts states that accountants will be liable to third parties for their negligent acts: a. when the persons who are harmed were foreseeable users. b, never. c. any time any user relies on the accountant's statements or reports. d. only when the users were clients. Liability of Accountants - Quiz (continued) 8. If an accountant files misstatements or omits material facts from a registration statement for a security, the accountant will be liable: a. for a common law tort. b. under Section 1 1 of the 1933 Securities Act. c. under Section 10(b) of the 1934 Securities Exchange Act. d. under the Sherman Act. 9. Section 1 1 of the 1933 Securities Act imposes what duty on accountants? a. The duty of care. h The duty of due diligence